Trading Glitch on Lighter Exchange Raises Questions About Automated Risk Management

A recent price spike on the decentralized exchange, Lighter, sparked a debate about automation’s risks in crypto trading. An unexpected surge wasn’t caused by large transactions or whales, but rather an automated trading system error identified as the culprit. This incident brought to light concerns surrounding transparency and the balance between technology and human oversight in decentralized exchanges (DEXes). The event serves as a reminder that DEX automation systems require careful scrutiny as they can lead to unexpected price volatility.